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Dubai-based private venture capital firm Cypher Capital recently launched a $100 million fund focused on digital assets, including cryptocurrencies. 

Speaking about the fund, Vineet Budki, Managing Partner, Cypher Capital, said the fund will specifically invest in blockchain startups.

“We have focussed on this segment because, I think, blockchain, in the long-term, has a big future,” he said.

Cypher Capital has been operating Fund I for two years, and it has successfully put in $10 million in over 100 areas of investment, shares Vineet.

Talking about the VC’s focus areas within the crypto universe, Vineet shared Cypher Capital focuses on DeFi or Decentralised Finance, which allows people to get loans against crypto assets, including — Ethereum or Bitcoin — on certain platforms.

“Basically, it is a one-click load that you can get on the platforms,” said Vineet. 

He added that “play-to-earn” — which allows people to earn rewards by playing games — a concept not quite popular in the past, is also one of Cypher Capital’s focus areas.

Besides, the crypto-focused VC firm is also looking at other segments such as Layer 2 solutions. 

“More than the segments, for us, the point is about backing really valuable founders who have the perseverance and patience to make something,” said Vineet. 

He added, at present, valuations in the crypto space are quite high, but in the future, it is expected to go much higher as a lot of money is flowing into the blockchain landscape, which is still at a very nascent stage. 

Talking about the exit scenario, Vineet said the average exit time for Cypher Capital is between three to five years. However, according to him, this time frame usually varies.

“When we look at India, it is a big market where users and developers exist. I think educating people about blockchain and crypto is not about looking at Bitcoin prices, but looking at the use cases it provides,” he signed off.